Ara Partners, a private equity firm specializing in industrial decarbonization investments, has closed Ara Fund II with approximately $1.1 billion in capital commitments. The fund was oversubscribed, exceeding its $650 million initial target and increasing its hard cap. The fund received commitments from a set of returning and new institutional investors in North America, Europe and Asia, including public pensions, sovereign wealth funds, endowments and foundations.
Led by managing partners Troy Thacker and Charles Cherington, Fund II will continue Ara’s strategy of investing in the ongoing decarbonization of the industrial economy.
“We are extremely gratified by the very strong interest in Fund II and pleased to welcome several well-respected institutional investors to our limited partner base,” said Cherington. “We particularly appreciate the support of our returning investors from Fund I and look forward to pursuing strong returns for all of our partners through an investment portfolio that is actively reducing GHG emissions, carbon and waste.”
“We’re pleased to see the investment community recognize Ara Partners’ distinctive approach to sourcing and investing in innovative companies at the forefront of a decarbonizing world,” said Thacker. “We believe that our differentiated focus on lowering carbon emissions in the industrial sector is an important piece of the global climate effort and look forward to continuing to execute investments across this growing sector.”
Current portfolio companies of Fund II are Polar Sapphire (high purity alumina serving Li-ion battery, LED, sapphire and semiconductor markets), Aloxe (European PET plastics recycling platform), Px Group (fully integrated UK industrial asset operator focused on renewables and decarbonization), Anesco (UK market leader in renewable energy and energy efficiency projects) and Divert (recycler of unsold retail food waste into renewable natural gas).
Lazard acted as placement agent, and Debevoise & Plimpton served as legal counsel in the formation of Fund II.